AGA Sees OpenBet, Sportradar Quit Possibly over Prediction Markets

The American Gaming Association (AGA) finds itself in a rough spot. On the one hand, the trade group has always maintained, critically with the key of its members, that the interests of the gambling industry in the United States are well aligned with economic, societal, and political goals.

AGA Sheds Two More Members as Prediction Market Debate Continues 

However, what started as a rift has become a rupture as of late, with more members quitting the trade group over its agnostic stance on prediction markets. At first, it was DraftKings and FanDuel who tendered their resignation, followed by Fanatics.

However, more companies, including two key suppliers, have now dashed for the door, with OpenBet and Sportradar similarly quitting. 

There has been no official reason shared with the media, but the suspected reason is clear – prediction markets, which AGA Senior Director, Strategic Communications & Media Relations, Dara Cohen confirmed in a reply to InGame, a leading industry media. 

The quitting of major players from the trade group indicates that AGA is on a collision course with the vertical, and it’s not bending a knee under its onslaught. The trade group has decided to pursue further action despite the departure of some of its key members, who are more or less the backbone of the association.

AGA has recently shared an update by the Tribal Alliance of Sovereign Indian Nations, which similarly opposes prediction markets: “Allowing Sports Contracts to be listed and traded interferes with the sovereign right of tribes and states to exercise their police power to regulate gaming within their respective territories – a right long recognized by courts throughout the United States.” 

This is not the first time tribalal and commercial groups have joined forces to address the outstanding issue of prediction markets. Earlier this month, AGA and the Indian Gaming Association (IGA) sent a letter to Congress, asking lawmakers to take a look at sports event contracts and describing them as illegal. 

For the time being, AGA remains in a good albeit weakened position with BetMGM and Caesars remaining members, along with dozens of other recognized and regulated sportsbooks.